KUALA LUMPUR (Aug 26): Sime Darby Property Bhd (KL:SIMEPROP) rose in Wednesday trading to a three-week high as investors cheered the real estate developer’s strong results and dividend policy boost.
Analysts, meanwhile, remained unanimously bullish as the company committed to pay up to 60% of its net profit as dividends with growing recurring income. Post-results, the consensus is projecting a net profit of RM582 million for the whole of 2026.
CGS International expects investors to like Sime Darby Property’s growing recurring income and higher dividend policy. “We believe this signals management's confidence in cash flow generation and should support a rerating in its valuation,” the house said.
Shares of Sime Darby Property rose as much as nine sen or 7% to RM1.41. The stock closed at RM1.36, its highest since Aug 10, giving the company a market capitalisation of about RM9 billion after more than 17 million shares exchanged hands..
Sime Darby Property is now rebounding after coming under pressure since the underwhelming first-quarter results. The stock has swung between gains and losses in 2026, shaping up to be another volatile year for its investors.
Still, all 13 research houses have ‘buy’ calls on Sime Darby Property, with an average target price of RM1.88.
Earnings are expected to improve in the second half, supported by stronger property billings, "a back-loaded launch pipeline" and a full-period contribution from the DC1 data centre, said BIMB Securities.
“Recurring income is becoming a more meaningful earnings pillar” with DC1 in Elmina Business Park contributing lease income of about RM27 million in the recently ended quarter, the house added.